“Many investors at the ETF event may have patted themselves on the back, since $4.7 billion has poured into India ETFs in the past two years. That’s helped to almost triple assets over that period, to $7.2 billion. While India ETFs rank 10th in single-country ETF assets, they rank second in inflows. Only flows into Japan ETFs top them, at $14.6 billion,” reports Eric Balchunas for Bloomberg.
The bottom line is that compared to other emerging markets ETFs, particularly the other members of the BRIC group, India funds have been decent-by-comparison this year and that strength could translate to some legitimate upside for patient investors.
Enticing money managers, India’s economy is expected to expand faster than its BRIC – Brazil, Russia, India and China – counterparts. India’s trade imbalances are also diminishing and the country’s currency and stocks have held up, or at least haven’t sold off as rapidly.
iShares India 50 ETF
